Homer Expansion  

 
Project Update - April 8, 2014

Over the last two months, five miles of distribution main have been installed on the Homer Spit. As of today that section of the project is 90% complete with a projected finalization date of May 1.

UTI crews will be completing 2013 tie-in work on East End Road. Additionally, they are cleaning up 2013 construction areas that need to be addressed. We have inspectors checking on this work daily so please notify the Homer Office if you notice areas that need to be cleaned up.

Upon completing all 2013 work, UTI plans to start the 2014 season on East Hill Drive within the next two weeks. Their work will proceed up the hill and work west towards West Hill. All clearing and brushing of the right-of-ways must be completed before May 15, 2015.

Clark Management has worked the last month west of West Hill, clearing and brushing the right-of-ways and have completed their work until April 20th, when they plan to start directional drilling wet land areas on the hillside, west of West Hill Drive. They will also start the installation of pipe on Kachemak Drive.

The 2014 schedule will be busy again this construction season with multiple crews working on the natural gas distribution system and we appreciate your patience. Please continue to drive slowly down or avoid construction zones when possible.

 
March 17, 2014

U.T.I. crews continue to progress along the Homer Spit. To date, U.T.I. has installed 16,732 feet of main line on the Spit. This week, crews will be working in the harbor area. As always, safety is a priority so please use caution while traveling in all construction areas.

Clark Management crews continue to clear right-of-ways in the Highland Road and East Bay Ridge area to prepare for the main line installation. We will continue to notify the public so that all residents are aware of work progress.

 
March 12, 2014

The 2014 Homer HSAD Phase II natural gas construction project has started once again.  This year, ENSTAR's work will focus on Kachemak Drive, Spit Road, and the hillside from West Hill to East Hill.  Our contractors will be working along the right-of-way in your neighborhoods, which may include the removal of trees.  Please use caution while traveling in these construction areas.  ENSTAR appreciates your patience during this construction season.  Completion of the HSAD natural gas system is forecasted to be August 30, 2014.

We appreciate the continued support from the Homer community and look forward to providing you with natural gas service.  If you have any questions, please contact the Homer construction office at (907) 435-0635. 

 


 
 

ENSTAR has a construction office in downtown Homer to manage the local distribution system projects. The office will also provide assistance to residents wishing to apply for natural gas service.

 
Office Main Number: 907-435-0635
             Fax Number: 907-435-0639
 
Office Location:
           345 Sterling Hwy, Suite 104
           Homer, AK 99603 

Expansion Background
 
Founded in 1961 as a natural gas distribution company, ENSTAR Natural Gas Company serves 136,000 customers in Southcentral Alaska.  In 2013, ENSTAR added more than 2,000 customers.   As the only natural gas distribution company in Southcentral Alaska, ENSTAR has historically relied on natural gas discovered by producers in the Cook Inlet.  Expansion to new areas, such as the City of Homer and Kachemak City, allows ENSTAR to bring a safe, clean, and reliable energy to thousands of additional Alaskans while reducing their energy costs by more than half.

ENSTAR received its Certificate of Public Convenience and Necessity to serve the Homer area from the Regulatory Commission of Alaska on August 25, 2004. In 2012, the State of Alaska provided The City of Homer with an $8.15 million dollar grant enabling the project to move forward. Construction on the Homer Trunk Line was completed in Fall 2013.    

  

 
1)     Trunk line
 
The 22.7 mile Trunk Line starts in Anchor Point, runs through the City of Homer, and ends in Kachemak City. The line from Anchor Point to Homer High School is 8” high density poly-ethylene pipe, while the remaining distance from Homer High School to Kachemak City utilizes 6” high density poly-ethylene pipe. 

 
 
2)    City of Homer Distribution System 
The City of Homer created a Homer Special Assessment District (HSAD), which approved the funding for the City’s distribution system and allowed the City to contract with ENSTAR for its construction. The build-out is structured in two phases; the first phase was completed in 2013 and the second will be constructed in 2014. For more information on how the HSAD works, please visit the City of Homer website:

 City of Homer distribution system build-out. White = 2013 Build-Out. Yellow = 2014 Build-out. 

 

 Homer Spit distribution system build-out. White = 2013 Build-Out. Yellow = 2014 Build-out. 

 

3)     Kachemak City Distribution System
 
A Utility Special Assessment District (USAD) was developed by Kachemak City to help its residents pay for the cost of the distribution build-out. Construction of the Kachemak City distribution system was completed in Fall 2013.

  

 
Surcharge
 
A surcharge is a temporary cost recovery mechanism that ENSTAR uses to assist area residents in paying for the cost of bringing natural gas to a new service area. 
Construction costs for the Homer trunk line are estimated to be $10.5 million. The State of Alaska’s grant amount of $8.15 million reduces the cost to Homer area residents to $2.35 million (assuming the project's actual cost is $10.5 million). Consistent with ENSTAR policies and practices approved by the RCA, the difference of approximately $2.35 million is passed on to customers of the new service area who receive natural gas through a $1 per thousand cubic feet (Mcf) surcharge.  This allows the cost of delivery to be distributed over a period of time rather than area residents having to pay the full cost up front in order to receive natural gas.  
The duration of the surcharge is dependent on how quickly gas is consumed. Therefore, the earlier customers sign up and start consuming gas, the sooner the balance will be paid and a surcharge will no longer be necessary.  
All parcels below the solid green line will be assessed the $1 per Mcf surcharge.
Click here to read the RCA approved tariff language for more detailed information on how the surcharge works